Lionel W. McKenzie and the Proof of the Existence of a Competitive Equilibrium

Duke Department of Economics Research Paper

Duke University Center for the History of Political Economy Working Paper No. 2011-03

34 Pages Posted: 11 Feb 2011

See all articles by E. Roy Weintraub

E. Roy Weintraub

Duke University - Department of Economics

Date Written: January 1, 2011

Abstract

The theorem proving the existence of general equilibrium in a competitive economy, which necessarily involved specifying the conditions under which such an equilibrium would exist, is an extraordinary achievement of twentieth-century economics. The discovery is commonly attributed to the paper by Kenneth Arrow and Gerard Debreu, "Existence of an Equilibrium for a Competitive Economy," which was published in the July 1954 issue of Econometrica. However it is less well-known, even within the economics profession, that Lionel McKenzie published a paper in the previous issue of Econometrica, "On Equilibrium in Graham's Model of World Trade and Other Competitive Systems,” which discussed many of the same themes. Over the past decade the new availability of archival material, the papers of Lionel McKenzie, Robert Solow, Gerard Debreu, and Leonid Hurwicz, permits a reexamination of the events surrounding the publication of both Econometrica papers in 1954. The discussion raises general issues concerning “simultaneous discovery,” “priority,” and “credit” in economic research, and opens a window into some academic practices of that time.

Keywords: Arrow-Debreu, McKenzie, General Equilibrium, Arrow-Debreu Model

JEL Classification: B2, B3

Suggested Citation

Weintraub, E. Roy, Lionel W. McKenzie and the Proof of the Existence of a Competitive Equilibrium (January 1, 2011). Duke Department of Economics Research Paper , Duke University Center for the History of Political Economy Working Paper No. 2011-03, Available at SSRN: https://ssrn.com/abstract=1758753 or http://dx.doi.org/10.2139/ssrn.1758753

E. Roy Weintraub (Contact Author)

Duke University - Department of Economics ( email )

Durham, NC 27708-0097
United States
919-660-1838 (Phone)
919-684-8974 (Fax)

HOME PAGE: http://www.econ.duke.edu/~erw/erw.homepage.html

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